Prince of Persia: The Sands of Time is a 3D platformer which focuses on acrobatics and agility. Throughout much of the game, the player must attempt to traverse the palace by running across walls, ascending or descending chasms by jumping back and forth between walls, avoiding traps, climbing structures and jumping from platform to platform, making other types of well-timed leaps, solving puzzles, and using discovered objects to progress.

Combat has a heavy focus on using acrobatics to defeat foes. One example is the ability of the Prince to rebound off walls in order to strike enemies decisively. The player can also vault over the enemies' backs and then finish them off. The player generally attacks enemies and blocks using a sword, although only the Dagger of Time can defeat humanoid enemies.